Yonex Co., Ltd. · TSE:7906
Yonex — H1 FY3/20 Earnings Presentation
21 slides from Yonex's earnings presentation, Nov 7, 2019
Slide 1: Financial Results 1st Half of Fiscal Year Ending March 31, 2020
Financial Results 1st Half of Fiscal Year Ending March 31, 2020 YONEX CO., LTD. (Tokyo Stock Exchange Code: 7906) November 7, 2019
Slide 2: 1H Key Performance Highlight
1H Key Performance Highlight □Net Sales Increased by 4.0% YY to JPY 31.8bn • Domestic badminton sales grew and tennis sales remained at the same level as the previous year • China sales expanded due to growth of badminton shoes and progress in inventory adjustments. Despite the negative impact of fo
Slide 3: Consolidated Financial Results
Consolidated Financial Results FY3/20 1H Compared (Million yen) FY3/19 1H FY3/20 1H YY Change Original with Forecasts Forecasts Net Sales 30,584 31,820 +1,235 +4.0% 31,500 +1.0% Gross Profit 13,198 13,667 +469 +3.6% ― ― Gross Profit Margin 43.2% 43.0% ― -0.2%pt ― ― SGA 11,469 11,955 +486 +4.2% ― ― O
Slide 4: Consolidated Operating Profit Changes
Consolidated Operating Profit Changes (Million yen) +98 Gross Profit Increase ＜ SGA Increase +469 <+3.6%> Personnel +271 Expenses 1,728 Advertising -7 +124 1,711 GP Margin -0.2%pt Gross Profit Expenses R&D Expenses (43.2% → 43.0%) Others SGA +486 <+4.2%> Operating Profit -17<-1.0%> FY3/19 FY3/20 1H
Slide 5: Segment Sales Information
Segment Sales Information (Million yen) FY3/19 1H FY3/20 1H YY Change Japan 19,697 20,550 +4.3% North America 1,081 1,091 +1.0% Sporting Goods Europe 1,225 1,179 -3.7% Division Asia 8,247 8,659 +5.0% Total 30,251 31,480 +4.1% Sports Facilities Division 333 339 +2.0% Total 30,584 31,820 +4.0% Japan :
Slide 6: Net Sales Change and Forex Impact (Reported Segments)
Net Sales Change and Forex Impact (Reported Segments) Forex rate USD EUR GBP RMB TWD FY3/19 1H* 108.67 131.64 149.71 17.08 3.67 Local Currency Basis Forex Impact FY3/20 1H* 110.04 124.31 142.41 16.19 3.54 (Million yen) * FY end of overseas subsidiaries is December. 31,820 +866 <+10.5%> +6 -454 <+2.0
Slide 7: Net Sales and Operating Profit of Sporting Goods Division: Japan
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Japan (Million yen) Net Sales (+4.3% YY) ・Domestic sales of badminton and apparel grew ・Domestic tennis sales remained at the same level 20,632 19,697 20,550 as the previous year - Strong sales of new soft tennis racquet “
Slide 8: Net Sales and Operating Profit of Sporting Goods Division: North America
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) North America Forex rate FY3/18 1H FY3/19 1H FY3/20 1H (Million yen) USD 112.37 108.67 110.04 *Jan-Jun Net Sales (+1.0% YY) ・Badminton sales remained at the same level as the previous year 1,081 1,091 971 ・Tennis sales dec
Slide 9: Net Sales and Operating Profit of Sporting Goods Division: Europe
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Europe Forex rate FY3/18 1H FY3/19 1H FY3/20 1H EUR 121.62 131.64 124.31 (Million yen) GBP 141.39 149.71 142.41 *Jan-Jun Net Sales (-3.7% YY) ・Sales on local currency basis increased by 1.7% YY 1,200 1,225 1,179 ・Badminton
Slide 10: Net Sales and Operating Profit of Sporting Goods Division: Asia
Net Sales and Operating Profit of Sporting Goods Division (Reported Segments) Asia Forex rate FY3/18 1H FY3/19 1H FY3/20 1H (Million yen) RMB 16.38 17.08 16.19 TWD 3.66 3.67 3.54 Net Sales (+5.0% YY) *Jan-Jun ・China 9,087 8,247 8,659 - Sales increased due to growth of badminton shoes - Total sales i
Slide 11: Consolidated Net Sales by Sports Categories
Consolidated Net Sales by Sports Categories Sales (Million yen) FY3/20 1H YY Change composition Badminton 17,645 +5.5% 55.5% Tennis 3,907 -3.5% 12.3% Sporting Goods Golf 571 -0.2% 1.8% Division Others 9,356 +5.1% 29.3% (Apparel and accessories) Total 31,480 +4.1% 98.9% Sports Facilities Division 339
Slide 12: Consolidated Net Sales by Sports Categories: Badminton and Tennis
Consolidated Net Sales by Sports Categories Badminton Tennis Japan Overseas (Million yen) 17,871 17,645 16,726 4,142 4,050 3,907 12,505 11,552 12,287 1,064 1,255 1,122 3,078 2,795 2,785 5,366 5,174 5,358 FY3/18 FY3/19 FY3/20 FY3/18 FY3/19 FY3/20 1H 1H 1H 1H 1H 1H Overseas Sales Composition: 69.6% (+
Slide 13: Consolidated Net Sales by Sports Categories: Golf and Others
Consolidated Net Sales by Sports Categories Golf Others Japan Overseas (Million yen) (Apparel and accessories) 9,360 8,902 9,356 2,214 2,088 2,255 572 571 516 176 236 221 7,145 6,814 7,101 339 335 349 FY3/18 FY3/19 FY3/20 FY3/18 FY3/19 FY3/20 1H 1H 1H 1H 1H 1H Overseas Sales Composition: 38.8% (-2.6
Slide 14: About China
About China Launch New Products for China Market ・Propose mid-price racquet models to help grow the customer base Progress in Inventory Adjustment ・Enhance monitoring of inventory ←↓people to try out our racquets Cultivate YONEX Fans on E-Commerce Flagship Store ・Started our membership system and se
Slide 15: Examples: Leverage Online and Offline Channels
Examples: Leverage Online and Offline Channels *The Sudirman Cup is the World Mixed Team Badminton TOTAL BWF Sudirman Cup* (Held in May in Nanjing) Championships held every two years. Advertising via Online Applications Arrange Tie-Ups with Streaming Applications, Live Stream Games Promotion Campaig
Slide 16: Consolidated Earnings Forecasts for FY3/20
Consolidated Earnings Forecasts for FY3/20 FY3/20 Forecasts for earnings remain unchanged Revised some forecasts for forex rates; stronger yen and weaker local currencies → Asia segment is expected to suffer negative impact due to effect of exchange rates FY3/20 1H Compared with FY3/19 FY3/20 (Milli
Slide 17: Appendix
ove’ YONEX Appendix
Slide 18: Consolidated Net Sales (Japan & Overseas)
Consolidated Net Sales (Japan & Overseas) Japan Overseas (Million yen) 31,330 32,232 31,820 30,584 25,218 15,621 15,960 15,132 15,886 49.9% 49.5% 49.9% 9,401 49.5% Overseas Sales Composition 37.3% 15,817 15,708 16,272 15,452 15,934 FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 1H 1H 1H 1H 1H *”Overseas” includ
Slide 19: Net Sales (Reported Segments)
Net Sales (Reported Segments) Japan (Export, Intermediary Sales) North America (Subsidiary) Europe (Subsidiary) Asia (Subsidiary) Sports Facilities (Million yen) 31,330 32,232 31,820 341 30,584 339 338 333 25,218 9,087 8,659 8,854 8,247 328 2,593 *1 1,200 1,179 1,209 999 1,186 971 1,225 1,091 897 1,
Slide 20: Net Sales (Unreported Regional Data)
Net Sales (Unreported Regional Data) Japan North America Europe Asia Others (Million yen) 31,330 32,232 31,820 294 30,584 258 282 289 25,218 243 12,458 12,647 12,647 11,705 6,088 2,070 1,983 2,047 2,055 1,887 999 897 971 1,081 1,091 15,817 15,708 16,272 15,452 15,934 FY3/16 FY3/17 FY3/18 FY3/19 FY3/
Slide 21: Forward-looking statements and Investor Relations contact
Statements made in these materials with respect to plans, strategies and future performances are forward‐looking statements based on information and assumptions available to Yonex when these materials were prepared. Investors are cautioned that various unforeseen factors could cause actual results t